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Sourced from a report by the National Travel and Tourism Office (NTTO), the United States celebrated a significant financial boost in May 2023 as international tourists splashed out an impressive $17.5 billion. This spending spree in travel and tourism-related activities recorded a 26 per cent increase compared to the same period in 2022, hitting the highest level of monthly expenditure since the COVID-19 pandemic took hold in February 2020.

Simultaneously, the report outlined that US residents spent almost $17 billion travelling abroad in May, which provided the US tourism industry with a balance of trade surplus of $530 million. This event is a rarity, occurring only four times in the past year when U.S. travel and tourism exports have overtaken imports.

For the year to date, from January to May 2023, international visitors have driven an astonishing $84.7 billion into the US economy through travel and tourism-related purchases. This figure indicates a nearly 41 per cent increase from the previous year, averaging around $561 million daily, a substantial contribution to the US economy.

A closer look at the composition of this monthly spending revealed a complex mosaic of travel exports. International tourists’ purchases of goods and services related to travel and tourism within the US reached $9.7 billion in May 2023. This figure, representing a 34 per cent year-on-year increase, comprises spending on food, accommodation, recreation, gifts, entertainment, and other incidental expenses associated with foreign travel.

The NTTO report further highlighted that travel receipts contributed 55 per cent of total U.S. travel and tourism exports in May 2023. This segment includes expenses such as local transportation within the US, contributing significantly to the country’s tourism industry.

Regarding passenger fare receipts, May 2023 saw U.S. carriers earn $3.2 billion from international visitors. This figure marked a 30 per cent increase compared to May 2022, reflecting the spending by foreign residents on international flights provided by U.S. air carriers. These receipts accounted for 18 per cent of total U.S. travel and tourism exports in the same month.

Further, the NTTO reported an exciting category of expenditure, encompassing educational and health-related tourism, as well as spending by border, seasonal, and other short-term workers in the United States. These spending activities amounted to $4.7 billion in May 2023, marking a 10 per cent increase from the previous year and contributing to 27 per cent of total U.S. travel and tourism exports for the month.

This influx of international spending has undoubtedly signalled a robust recovery of the US tourism industry, fostering optimism for the sector’s future after a period of uncertainty due to the COVID-19 pandemic.